Sequestered account

Sequestered account,

Definition of Sequestered account:

  1. Bank account impounded on court orders, denying the account holder any access to the account balance without the courts approval.

  2. Virtually any type of account can be sequestered, including bank and brokerage accounts. IRAs and qualified plans are more difficult to sequester, as they are protected by federal law from most types of creditors. Usually, only the IRS has the authority to sequester these accounts.

  3. A sequestered account is a deposit account that is seized through legal action or court order. Funds cannot be removed from a sequestered account without the approval of the seizing party. Sequestered accounts are usually segregated from other accounts at an institution and are kept in a separate file.

Meaning of Sequestered account & Sequestered account Definition